Milevski v Paltos (No 2) [2022] NSWSC 437

Milevski v Paltos (No 2) [2022] NSWSC 437

Because the partnership accounting process resulted in a judgment for a single sum representing the balance due on account and payable by one partner to the other, the proceedings were for the recovery of money in the relevant sense and statutory interest under s 100 was payable. Mr Milevski was substantially successful on the major contested goodwill valuation issue and on the Westpac indemnity claim, so a costs order in his favour after 21 April 2016 was appropriate, except for costs solely referable to other accounting and receivership issues.

Jurisdiction
Australia
Judgment Date
08 April 2022
Procedural Posture
Equity Proceedings Concerning Partnership Winding Up and Account; Notice of Motion by Receivers for Unpaid Remuneration / Post Judgment Orders Following Milevski V Paltos [2022] NSWSC 261; Ex Tempore Decision on Interest, Costs, Indemnity and Receivers' Remuneration
Outcome
Judgment and orders made for the plaintiff in the main proceedings, with statutory interest and costs in part; judgment entered for the Receivers for unpaid remuneration; receivers' costs and motion costs reserved.
Legal Topics
['statutory Interest' 'partnership Account' 'recovery of Money' 'costs Following Judgment' "receivers' Remuneration" 'indemnity Against Partnership Liability']
['equity' 'civil Procedure' 'partnership' 'costs'] ['statutory Interest' 'partnership Account' 'recovery of Money' 'costs Following Judgment' "receivers' Remuneration" 'indemnity Against Partnership Liability']

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Procedural Posture

Equity Proceedings Concerning Partnership Winding Up and Account; Notice of Motion by Receivers for Unpaid Remuneration / Post Judgment Orders Following Milevski V Paltos [2022] NSWSC 261; Ex Tempore Decision on Interest, Costs, Indemnity and Receivers' Remuneration

Legal Issues

  1. 1 ['Whether judgment for the balance due on a partnership account was in proceedings for the recovery of money so as to attract statutory interest under s 100 of the Civil Procedure Act 2005 (NSW).' 'Whether delay in completing the account justified refusing statutory interest.' 'Whether the earlier costs order made on 21 April 2016 covered costs incurred after that date.' 'Whether the plaintiff should receive costs after substantially succeeding on the goodwill valuation issue and the Westpac indemnity claim.' 'Whether the receivers should have judgment for unpaid remuneration and how costs of the motion should be dealt with.']

Ratio Decidendi

Because the partnership accounting process resulted in a judgment for a single sum representing the balance due on account and payable by one partner to the other, the proceedings were for the recovery of money in the relevant sense and statutory interest under s 100 was payable. Mr Milevski was substantially successful on the major contested goodwill valuation issue and on the Westpac indemnity claim, so a costs order in his favour after 21 April 2016 was appropriate, except for costs solely referable to other accounting and receivership issues.

Court Disposition

Judgment and orders made for the plaintiff in the main proceedings, with statutory interest and costs in part; judgment entered for the Receivers for unpaid remuneration; receivers' costs and motion costs reserved.

Orders

  • ['Judgment entered in favour of the plaintiff against the defendant for $339,184 plus interest of $79,647, being interest pursuant to s 100 of the Civil Procedure Act on $266,847 from 21 April 2016 to 14 March 2022.' 'The defendant must indemnify the plaintiff against all liability in respect of the judgment...